MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) 6 - 2009

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Participating Agency agrees to provide funding for the Program in the amount specified in Table 1 below per Smart Controller residential active valve, in the amount specified in Table 1 below per commercial acre installed at a qualified property within Participating Agency's service territory for which a rebate is given and costs for installation verification inspection (cost varies between residential and commercial, see Exhibit 1), up to the maximum "Not to Exceed" numbers set forth in Table 1 below. As part of its administrative responsibility, MWDOC will work with Metropolitan's two Rebate Contractors to track rebate distribution in order to limit the number of residential and commercial rebates issued within Participating Agency's service area so that the aggregate amounts of Participating Agency's per-valve and per-acre funding contributions to rebates issued and pass-through inspection costs do not go over the Participating Agency's designated "Not to Exceed" fiscal year totals: Table 1 Category Participating Agency No. of Valves or Acres Funding Amount Not to Exceed Funding Limit Fiscal year 2009-211 Residential 1,420 valves $9 er Valve $12 780 Commercial 60.17 irrigated acres $120 per , $7 220 Irri ated Acre Inspection Varies $0 Verification Total $20,000 • MWDOC will invoice Participating Agency on a monthly basis for rebates issued in the previous month period, and payment will be due within thirty (30) days of the date of the invoice. • Participating Agency may increase its "Not to Exceed" Funding Limit under this Letter Agreement by written notice to MWDOC's General Manager made by the undersigned representative of the Participating Agency or his or her successor. Any increase must be made prior to the exhaustion of available funding. In addition to the per valve and per acre funding shown in Table 1, Participating Agency may be responsible for all residential and commercial Smart Timer installation inspection costs incurred within its service area as required to verify installations for which rebates were submitted as provided herein, up to the maximum "Not to Exceed" numbers set forth in Table 1. Currently MWDOC has additional Grant funding to cover verification of both residential and commercial Smart Timer installation costs. Should this grant funding expire during the term of this Agreement, MWDOC, upon notifying Participating Agency, reserves the right to begin invoicing Participating Agency for Smart Timer installation inspection costs up to the "Not to Exceed" amount set forth in Table 1 above. Such costs shall be invoiced by MWDOC as apass-through cost on a monthly basis and shall be based on costs invoiced to MWDOC by the installation verification consultant. MWDOC shall begin invoicing Participating Agency upon receipt of invoices submitted by the installation verification consultant for inspection services provided on or after July 1, 2009. Invoicing of the Participating Agency shall continue as long as both commercial and residential installation verifications continue. Exhibit 1, a current copy of MWDOC's installation verification consultant's invoice to MWDOC, shows the current billing rates that will be used as the pass-through